Updated October 28, 2024

How Much Does an LLC Cost in Ohio

Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. This compensation may impact how and where products appear on this site. You help support CreditDonkey by using our links. (read more)

The filing fee for starting an LLC in Ohio is $99. But there may be other expenses to consider. Read on for the full list.

How much does it cost to start an LLC in Ohio?
Here are the following fees to consider:

If you want to start an LLC in Ohio but worry that it's going to be expensive, you're not alone.

Many people don't start businesses because they're scared of not being prepared for the expenses.

But the fact that you're asking the right question is one step closer to that dream business.

So, how much does an LLC cost in Ohio? Keep reading to find out.

How do you plan to form your LLC?

Estimated Total Cost of an LLC in Ohio

Starting an LLC in Ohio is not as complicated compared to other states. It's also not as expensive. At a minimum, you'll need to pay $99 for the Ohio LLC filing fee.[1]

Here's the full list at a glance:

Ohio LLC One-Time Fees
Ohio Domestic LLC Formation Filing Fee$99
Ohio Foreign LLC Formation Filing Fee$99
State Vendor's License Fee$25
Ohio LLC Annual Fees
Business Permit and License Fees$0 - $200+
Commercial Activity Tax$0 or 0.26%
Ohio LLC Optional Fees
Statutory Agent Fee$0 - $300+
Operating Agreement Fee$0 - $500+
Employer Identification Number (EIN)$0 - $99
Beneficial Ownership Information Report$0 - $149
Name Reservation Fee$39
Doing Business As (DBA) Name Fee$39
Expedited Services Fee$100 - $300
Certified Copies of Business Documents Fee$5
Certificate of Good Standing Fee$5
Certificate of Correction Fee$50
Certificate of Amendment Fee$50
Statement of Change of Statutory Agent Fee$25
Business Website Domain Fee$10 - $20
Business Insurance Premiums$ - $$$

How much does it cost to form an LLC in Ohio?
The LLC formation filing fee in Ohio is $99. On top of that, the state vendor's license costs $25. Other add-on fees could increase the total cost of forming an LLC to over $1,000.

You might not have to pay for every item on this list. But there are those that are required to start the LLC.

Mandatory Fees for LLCs in Ohio

You must pay the following fees to the government to establish your Limited Liability Company (LLC).

They are essential for your LLC to be officially recognized in Ohio and allowed to do business legally.

Can I start an LLC in Ohio for free?
No. All LLCs in Ohio must pay the $99 filing fee.

Ohio Domestic LLC Formation Filing Fee

Cost: $99

An Articles of Organization is a formal legal document required to establish a limited liability company (LLC) at the state level. To get one, you must pay the $99 filing fee to the Ohio Secretary of State.[1]

The Articles of Organization should contain:

  • Business name (with "LLC" at the end)
  • Statutory agent's full name and Ohio address
  • Full names of the LLC's members/managers
  • Business purpose

The Ohio Secretary of State usually takes one week to process the Articles of Organization after submission of details and filing fee. You can use a credit or debit card to pay the fee if you file online.

Ohio LLC Expedited Services
Ohio offers expedited filing services of the Articles of Organization for an additional fee of $100 to $300, depending on how quickly you want it done. Your Articles of Organization will be processed within two days after it's received.

Ohio Foreign LLC Formation Filing Fee

Cost: $99

If your LLC is registered in a different state and you want to do business in Ohio, you must register it as a foreign LLC. This process, known as obtaining Ohio Foreign Qualification, allows your LLC to operate legally in the state.

Before proceeding, verify with the Secretary of State in your home state if there are documents required to expand your LLC to Ohio.

Does Ohio require annual reports for LLCs?
No. Ohio LLCs and corporations do not need to file an annual report. This means you will not have to worry about annual report filing fees.

Ohio State Vendor's License Fee

Cost: $25

In Ohio, any business that generates sales needs to get a vendor's license.[2] It's a license to collect and remit sales tax to the state. You can apply for this through the Ohio Department of Taxation or your local County Auditor.

If your business has fixed locations in multiple counties, you need to obtain a vendor's license for each of those counties.

Depending on the nature of your business, you might need to get other licenses as well. Industries regulated by state or federal agencies will likely need to acquire the necessary state or federal licenses and pay any related fees.

Apply for a vendor's license online.
Mail and in-person applications for a vendor's license can take up to six weeks to be processed. We recommend applying online instead.

Ohio State Business Permits Fee

Cost: $0 to $200+

Depending on the nature of your business, you may need to obtain a specific business license. For example, acquiring a mobile food vending license for a mobile food truck in Columbus costs $180.[3]

You can typically get these licenses and permits from the city or county clerk's office in your area.

Local Business Permit vs. Vendor's License
A local business permit allows you to operate a business in that locality. It covers local regulations like zoning and safety. On the other hand, a vendor's license is for businesses that sell goods and need to collect sales tax. It's about tax collection rather than local operational rules.

Ohio Commercial Activity Tax

Cost: $0 or 0.26% of taxable gross receipts over $3 million

In Ohio, if your LLC's yearly gross receipts are over $3 million in 2024, you must pay a commercial activity tax (CAT). LLCs earning $3 million or less annually are not subject to this tax.

The CAT is calculated yearly and is based on your LLC's total gross receipts. The fee varies depending on your LLC's business volume and income. Taxable gross receipts exceeding $3 million in 2024 and $6 million in 2025 and thereafter will be subject to a tax rate of 0.26%.[4]

Late CAT filings are subject to a penalty.
This will be either $50 or 10% of the unpaid tax, depending on which amount is higher.[5] Additionally, interest can be charged on any overdue taxes.

Optional Fees for LLCs in Ohio

Aside from the LLC mandatory fees, there may be other fees you need to budget for depending on your business needs.

Services like hiring a registered agent, creating a website, and getting business insurance can add up to the cost of starting an LLC. Here's how much optional services can cost you.

Does Ohio have a franchise tax?
No. Ohio used to have a franchise tax, but this was eliminated for most taxpayers in 2010. Consult with a tax lawyer or accountant to understand the additional federal and state taxes your LLC may need to pay.

What's your main concern when considering the cost of forming an LLC?

Ohio Statutory Agent Fee

Cost: $0 to $300+

Every LLC in Ohio must appoint a statutory agent, also known as a registered agent. This agent is responsible for receiving legal papers and official mail for the LLC.

An LLC can't act as its own registered agent. However, you or another member/manager of the LLC can take on this role, which can help reduce yearly expenses.

Consider hiring a statutory agent service if you:

  • Don't have an Ohio address
  • Wish to keep your address private
  • Prefer someone else to handle the registered agent duties so you can focus on managing the business

Ask for your statutory agent's consent.
In Ohio, the person you choose as the LLC's statutory agent must agree to their role by signing the Articles of Organization.

Ohio Operating Agreement

Cost: $0, or up to $500+

LLCs in Ohio are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.

An LLC operating agreement contains the following:

  • The roles and responsibilities of each member
  • How new or departing members will be treated
  • How business profits and losses will be divided

Ideally, you should already have a signed Operating Agreement before forming an LLC in Ohio. But if your LLC is already formed, you can always draft it yourself after.

Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.

Save money with a free operating agreement template.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.

Ohio Employer Identification Number (EIN)

Cost: $0, or $50 to $99

Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.

You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:

Single-member LLCs in name don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.

Does my LLC need a bank account?
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .

Beneficial Ownership Information Report

One-Time Cost: $0, or up to $149

The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[6]

It includes information about the LLC's beneficial owners, including name, birth date, and address.

FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:

You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.

Ohio Name Reservation Fee

Cost: $39

Choosing a name for your LLC in Ohio is free. The name is approved without any additional charge when the state approves your Articles of Organization.

If you're not ready to submit your Articles of Organization, you can reserve your desired business name. Paying the $39 reservation fee will prevent others from using that name for 180 days.

In Ohio, your LLC's name must be different from other names already registered with the state. The Secretary of State keeps a list of all registered business names.[7]

If the Ohio Secretary of State rejects your LLC formation application:
They will reserve the name of your proposed entity for a year. This ensures you have enough time to correct your application without worrying about someone else using your chosen business name.

Ohio Fictitious Name Filing Fee

Cost: $39

A fictitious name (Doing Business As or DBA) allows your LLC to operate under a name different from its legal name registered with the state.

Some LLCs in Ohio use a DBA for branding and marketing. It allows for a more appealing name for the target market.

It usually takes three to seven days to process a DBA. If you need your application processed more quickly, you can pay an additional fee for expedited services.

Do I need to renew my Ohio LLC's fictitious name?
Yes. If your LLC uses a fictitious name in Ohio, you will need to renew it every five years for a filing fee of $25.

Ohio Expedited Services Fee

Cost: $100 to $300

In Ohio, most of your LLC documents can be expedited for a fee. This includes the Articles of Organization and the Fictitious Name Registration. The cost depends on how quickly you need the documents to be processed:[1]

  • $100: within 2 business days
  • $200: within 1 business day
  • $300: within 4 hours (if application is received by 1 PM)

Ohio Certified Copies of Documents Fee

Cost: $5

Certified Copies of Ohio business documents validate that the documents are true and correct.

You often need certified copies to open new bank accounts, apply for loans, or demonstrate to investors that your LLC is legitimate and properly managed.

Ohio Certificate of Good Standing Fee

Cost: $5

In Ohio, a Certificate of Good Standing verifies that your business meets all state regulations. And that it is legally authorized to conduct business with the state.

You may need this certificate if you're expanding your business to another state, opening a bank account, or seeking a loan.

Orders for the certificate made online or in person are processed immediately. However, requests sent by mail may take up to two days to process. Additional time is also needed to mail the certificate back to you.

Ohio Certificate of Correction Fee

Cost: $50

After your Ohio LLC application is approved, get a copy of the approved Articles of Organization and review all the details carefully.

If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Certificate of Correction.

Ohio Certificate of Amendment Fee

Cost: $50

Your Ohio LLC's Articles of Organization contains specific details about your business. Should these details change, you must submit a Certificate of Amendment to the Ohio Secretary of State.

File a Certificate of Amendment if you:

  • Add, remove, or change an LLC member or manager
  • Update your LLC's business address
  • Modify your LLC's stated business activities

Certificate of Correction vs. Certificate of Amendment
A Certificate of Correction is for fixing mistakes in initial filings. A Certificate of Amendment is for updating or changing key details as the LLC evolves.

Ohio Change of Statutory Agent Fee

Cost: $25

You must file a Statement of Change of Statutory Agent if you want to update your LLC's statutory agent information.

Use it to change the individual or company responsible for receiving the LLC's legal documents. It's also used to update the statutory agent's address.

Certificate of Amendment vs. Statement of Change of Statutory Agent
A Certificate of Amendment is used to change the business name, business purpose, and other details. The Statement of Change is focused solely on changes regarding the statutory agent.

Ohio Business Website Domain Fee

Annual Fee: $10 to $20

A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.

Beware of website domain squatters.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.

Ohio Business Insurance Premiums

Cost: $ - $$$

If your LLC in Ohio has at least one employee, state law mandates you get workers' compensation insurance. Failing to have this insurance can lead to fines or even your business being shut down.

Ohio has a "monopolistic insurance fund." This means you must get insurance through the state's Bureau of Workers' Compensation, not private insurers.[8]

The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.

In Ohio, the average rate for workers' comp is around 75 cents for every $100 of your payroll. So, a $100,000 payroll costs about $750 per year. However, this can vary by industry.

Bottom Line

Setting up an LLC in Ohio is relatively affordable. And now that you've finished reading, you should feel more prepared and less worried about unexpected costs.

At a minimum, you'll need to pay the $99 filing fee. And if your LLC sells products, a $25 vendor's license fee.

While other fees may not be required, it's always a good idea to seek professional help if you need it.

LLC Cost by State

References

  1. ^ Ohio Secretary of State. Filing Forms & Fee Schedule, Retrieved 01/10/2024
  2. ^ Ohio Department of Taxation. License Filing Requirements, Retrieved 01/24/2024
  3. ^ The City of Columbus. License Section: Mobile Food Vending (MFV), Retrieved 01/24/2024
  4. ^ Ohio Department of Taxation. Changes to Ohio's Commercial Activity Tax, Retrieved 01/24/2024
  5. ^ Ohio Laws & Administrative Rules. Section 5751.06 | Penalty for late filing or delinquent payment., Retrieved 01/24/2024
  6. ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
  7. ^ Ohio Secretary of State. Guide to Name Availability, Retrieved 01/06/24
  8. ^ Ohio Bureau of Workers' Compensation. Ohio Workers' Compensation and You, Retrieved 01/10/2024

Write to Nicole King at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.


How Much Does It Cost to Form an LLC?

Forming an LLC can be the next step for your business. But how much will it cost? Read on to learn about the different LLC formation fees.

About CreditDonkey
CreditDonkey is a business formation services comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2024 CreditDonkey Inc. All Rights Reserved.